SoFi shines in some key areas when it comes down to their student loans

The company likes to emphasize that its is not a bank and therefore does not operate like one. Instead, it prefers to refer to itself as a community of borrowers and financially-literate people who are taking their debt and wealth-management into their own hands.

Because SoFi isn’t a bank, the company doesn’t make a hard inquiry on your credit, meaning that your score won’t be negatively affected. And once you submit your application, you may be approved within minutes, according to SoFi’s website.

For many borrowers, one of SoFi’s main selling points is the fact that it does not charge any fees – ever. There are no fees associated to the loan itself, such as disbursement or origination fees https://worldpaydayloans.com/payday-loans-ca/buena-park/, and no fees associated to borrower behavior, such as late fees.

The second selling point for SoFi is its generous repayment plans. While several other lenders have similar, if not identical payment plans, loan terms are usually not as flexible. SoFi also makes it easier for borrowers to determine which plan is best for them by indicating which option will cost them less overall (immediate payments – paying the principal and interest right away, while in school – are the lowest cost option). SoFi also offers deferred payments (no payments while in school, the highest overall cost option), interest only payments (interest payments only while in school), and partial payments (flat $25 fixed monthly payments while in school). While these options are also offered by some other lenders, the having all four options makes SoFi relatively competitive in the area of student loans.

Unemployment Protection beneficiaries can get student loan deferment in 3 month increments for up to 12 months, and receive advice on interviewing and networking. While this is benefit is well advertised, it does not differ much than other deferment options from other lenders.

Because SoFi brands itself as a community, and is not a bank, it has the freedom to offer post-college perks for its borrowers. Some of the benefits include career coaching, networking events, and even singles’ events. This can be beneficial to those who choose to utilize these services to ease the transition from school to the workforce.

SoFi Student Loans: Disadvantages

While there are clear benefits in opting for a SoFi student loan, some borrowers may not want to jump on the SoFi bandwagon without looking at the disadvantages.

SoFi’s student loan eligibility criteria appears fairly straightforward and similar to that of other lenders: borrowers must be of age (or their co-signers must be of age), the borrower must use the loan for their education and related expenses, and the borrower must be working toward a degree in a “satisfactory” way, among other criteria. However, many customers report that borrowers must have a credit score of at least 650 to 700 in order to qualify, which may be difficult for borrowers with little credit history.

Students looking to borrow less than $5,000 are out of luck: that’s the minimum amount you can borrow with SoFi.

SoFi borrowers whose SoFi student loans are in good standing are eligible for Unemployment Protection, given that they have involuntarily lost their job

SoFi has relatively competitive interest rates, and you may be approved for one of the lowest rates you can get with SoFi. However, we encourage potential borrowers to check out other lenders before committing to SoFi, as they may get better rates elsewhere. Similarly, while SoFi’s grace period of 6 months is fairly standard, if this is an important factor to you, you may be able to find a lender with a longer grace period.